Why are people saying "Obama will raise your taxes", when 95% of the United States will get tax cuts?
Or is it that Obama brainwashed me?
OK, 95% of TAXPAYERS, happy?
- 1 decade agoFavorite Answer
For all those confused by the Tax system here is a great explanation I was given by which puts it in very simple terms.
First, what is it when someone who doesn't pay taxes to begin with, gets a tax cut? It's called redistribution of wealth…let me give you an example that explains this tax business:
Our tax system explained in terms of beer…
A brilliant explanation of our tax system using actual percentages, the impact of a tax cut, and the public reaction that everyone should be able to understand.
Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this:
The first four men (the poorest) would pay nothing.
The fifth would pay $1.
The sixth would pay $3.
The seventh would pay $7.
The eighth would pay $12.
The ninth would pay $18.
The tenth man (the richest) would pay $59.
So, that's what they decided to do. The ten men drank in the bar e very day and seemed quite happy with the arrangement, until one day, the owner threw them a curve. 'Since you are all such good customers,' he said, 'I'm going to reduce the cost of your daily beer by $20. 'Drinks for the ten now cost just $80.
The group still wanted to pay their bill the way we pay our taxes, so the first four men were unaffected. They would still drink for free. But what about the other six men - the paying customers? How could they divide the $20 windfall so that everyone would get his 'fair share?'
They realized that $20 divided by six is $3.33. But if they subtracted that from everybody's share, then the fifth man and the sixth man would each end up being paid to drink his beer. So, the bar owner suggested that it would be fair to reduce each man's bill by roughly the same amount, and he proceeded to work out the amounts each should pay.
And so -
The fifth man, like the first four, now paid nothing (100% savings).
The sixth now paid $2 instead of $3 (33%savings).
The seventh now pay $5 instead of $7 (28%savings).
The eighth now paid $9 instead of $12 (25% savings).
The ninth now paid $14 instead of $18 (22% savings).
The tenth now paid $49 instead of $59 (16% savings).
Each of the six was better off than before. And the first four continued to drink for free. But once outside the restaurant, the men began to compare their savings.
'I only got a dollar out of the $20,'declared the sixth man. He pointed to the tenth man,' but he got $10!'
'Yeah, that's right,' exclaimed the fifth man. 'I only saved a dollar, too. It's unfair that he got ten times more than I!'
'That's true!!' shouted the seventh man. 'Why should he get $10 back when I got only two? The wealthy get all the breaks!'
'Wait a minute,' yelled the first four men in unison. 'We didn't get anything at all. The system exploits the poor!'
The nine men surrounded the tenth and beat him up. The next night the tenth man didn't show up for drinks, so the nine sat down and had beers without him. But when it came time to pay the bill, they discovered something important. They didn't have enough money between all of them for even half of the bill!
And that, boys and girls, journalists and college professors, is how our tax system works. The people who pay the highest taxes get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas where the atmosphere is somewhat friendlier.
David R. Kamerschen, Ph.D.
Professor of Economics
University of Georgia
- BLv 41 decade ago
Of course taxes will go up, and would have regardless of who won. Think about it. A 5 trillion dollar or more national debt, Another trillion dollar deficit for this year at least. Who the heck do you think is going to pay this off. Raise income taxes? Raise corporate taxes which will simply be passed on down the line ? Either way you pay.And if you think there are enough Americans earning more than $250,000 per year to support this debt, think again. It's going to a tough few years
- Noah HLv 71 decade ago
The right wing radio nitwits have also convinced the ditto-heads that beside 'raising your taxes, the Obama administration is going to nationalize the means of production and distribution...no kiddin'...they actually said that. Of course they said that he's un-american, he'll shmooz with the Iranians, he's a muslim, a radical christian, a terrorist, a non-citizen, hates jews, he's a surrender monkey, 'far-left' and a black nationalist that hates white people. Plus we found out that old man McCain got shot down. Obama stayed on message.....a better deal for the 95% of Americans that comprise the working class. For a lot of us we'll be happy if he can keep things from getting worse. Hint: If you hear it on right wing radio of FOX 'News' it's total BS! No kiddin'!
- Bill FLv 51 decade ago
I will be happy to come on here and admit I was wrong IF 95% of America gets a tax cut under Obama. However, he wants to spend too much money to offer these tax cuts. If we would shrink the government, we could get out of debt, and still offer these tax cuts. Dems however don't want to shrink the government.
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- 1 decade ago
That's what Obama "said".
NEWS FLASH... politicians will actually LIE to get votes!!! OMG!!!
The 5% that Obama wants to tax at a higher rate have already hidden their money out of Obama's reach.
So, in order for Obama to carry through with his campaign promise, he will look to tax the middle class (that would predominately be the white Americans who voted for him).
Meanwhile, the 40% that pay no taxes will get money form the middle class... that's called SOCIALISM (although it sounds like Robin Hood too).
The problem is, America already has more than it's fair share of social programs (more than even some Socialist countries).
These programs were designed to be safety nets, not wheel-barrows that would carry generations of families from now til eternity.
You'd better sit down... yes, you got duped.
- 1 decade ago
Because when you raise taxes on big companies, they will not take a loss and move on, they will react, and that means raise prices, lay people off. So if someone gets a tax break prices will increase. so money you get will be spent elsewhere.
I have a small Biz, that has a lot of big biz clients. Now they can react by saving money and cut these small biz. So now small biz fail their employees get effected.
Also, his records do not indicate what he says. he had chances to lower taxes and never did
Big Biz, keep the market moving
- 1 decade ago
Look at all the money Obama wants to spend. He wants universal health care, he wants a lot more government programs. It is also fact that JFK was the only democrat not to raise taxes, probably because he did not get to it yet.
Basically, democrats ALWAYS raise your taxes. Another Carter on our hands?
- 1 decade ago
Everyone's been brainwashed. Only 60% pay income tax so how can he reduce was isn't paid? Also, he will allow Bush's tax cuts to expire in 2010 which will in effect be a tax hike.
He keeps moving the target of who he thinks is rich. First it was $250,000, then it was $200,000, then $150,000, then $120,000. Now he says he'll only raise taxes on people making $97,000.
Yup - you've been brainwashed.
- ochimo444Lv 41 decade ago
The belief is that when the Bush tax cuts expire in 2011, the tax breaks that Obama is giving will not make up the difference and as a result your taxes will be higher than they are now.
- 1 decade ago
No, honestly it is true. He is letting the Bush tax cuts expire which will cause everyone's taxes to go up. Not quite sure how it will all work out for everyone, but that is what people are talking about.